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Management 9e.- Robbins and Coulter

Essentials1Learning ObjectivesAt the end of this training, you should be able to:Describe the characteristics of an organization and explain how the concept of an organization is changingExplain the universality of the management concept, discuss why an understanding of management is important and describe the rewards and challenges of being a manager.

12Learning ObjectivesDescribe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals.Distinguish among planning, organizing, leading and controlling (the four managerial functions), and explain how managers ability to handle each one can affect organizational performance.13Learning Objectives (Contd..)Differentiate among three levels of management, and understand the responsibilities of managers at different levels in the organizational hierarchy.Identify the roles managers perform, the skills they need to execute those roles effectively and the way new information technology is affecting these roles and skills.Discuss the principal challenges managers face in todays increasingly competitive global environment.1415What Is An Organization?An Organization DefinedA deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone).Common Characteristics of OrganizationsHave a distinct purpose (goal)Composed of peopleHave a deliberate structure516Exhibit 1Characteristics of Organizations

617Exhibit 2The Changing Organization

7Exercise: 1Discuss Mumias Sugar Company in terms of the Characteristics of Organizations.How is Mumias Changing?1819Why Study Management?The Value of Studying ManagementThe universality of managementGood management is needed in all organizations. Studying management helps people to understand what management is and prepares them accomplish managerial activities in their organizations.The reality of workEmployees either manage or are managed.Well being of societyProper management directly impacts improvements in the well-being of a society.9110Why Study Management?The Value of Studying ManagementRewards and challenges of being a managerManagement offers challenging, exciting and creative opportunities for meaningful and fulfilling work.Successful managers receive significant monetary rewards for their efforts. Studying management therefore opens a path to a well-paying job and a satisfying career.10111Exhibit 3Universal Need for Management

11112Exhibit 4Rewards and Challenges of Being A Manager

12What is Management?ManagementThe planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.Resources are organizational assetsPeopleSkillsKnowledge InformationRaw materialsMachineryFinancial capital

113114Who Are Managers?ManagerSomeone who coordinates and oversees the work of other people so that organizational goals can be accomplished.A person responsible for supervising the use of an organizations resources to meet its goals.

14115Classifying ManagersFirst-line ManagersIndividuals who manage the work of non-managerial employees.Middle ManagersIndividuals who manage the work of first-line managers.Top ManagersIndividuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.15116Exhibit 4Managerial Levels

16Organizational PerformanceOrganizational PerformanceA measure of how efficiently and effectively managers are using organizational resources to satisfy customers and achieve goals.Efficiency A measure of how well or productively resources are used to achieve a goal.EffectivenessA measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.117118What Is Managements Concern?Managerial ConcernsEfficiencyDoing things rightGetting the most output for the least inputsEffectivenessDoing the right thingsAttaining organizational goals

18Exhibit 5 Efficiency, Effectiveness, and Performance in an Organization

119Exercise 2 Team EffectivenessSelf assessment and Discussion120121Exhibit 6Effectiveness and Efficiency in Management

21What Do Managers Do?Henri Fayol - Functional ApproachFirst outlined the four managerial functions in his book General Industrial Management. Managers at all levels in all organizations perform each of the functions of planning, organizing, leading, and controlling.122123What Do Managers Do?Functional ApproachPlanningDefining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.OrganizingArranging and structuring work to accomplish organizational goals.LeadingWorking with and through people to accomplish goals.ControllingMonitoring, comparing, and correcting work.23Exhibit 7 Four Functions of Management

124125Exhibit 8Management Functions

25PlanningIdentifying and selecting appropriate goals and courses of action for an organization.The planning function determines how effective and efficient the organization is and determines the strategy of the organization.Three Steps in the Planning Process:Deciding which goals to pursue.Deciding what courses of action to adopt.Deciding how to allocate resources.126Management Key ConceptsOrganizationPeople working together and coordinating their actions to achieve specific goals.Goal/objectiveA desired future condition that the organization seeks to achieve.StrategyA cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.127OrganizingStructuring working relationships in a way that allows organizational members to work together to achieve organizational goals.Organizational StructureA formal system of task and reporting relationships that coordinates and motivates organizational members.Creating organizational structure:Grouping employees into departments/sections according to the tasks performed.Laying out lines of authority and responsibility for organizational members.128LeadingArticulating a clear vision to follow, and energizing and enabling organizational members so they understand the part they play in attaining organizational goals.Leadership involves using power, influence, vision, persuasion, and communication skills.The outcome of leadership is highly motivated and committed organizational members.129Exercise 3 Leadership MotivationSelf assessment and Discussion130ControllingEvaluating how well an organization is achieving its goals and taking action to maintain or improve performance.Monitoring individuals, departments, and the organization to determine if desired performance standards have been reached.Taking action to increase performance as required.The outcome of control is the ability to measure performance accurately and to regulate the organization for efficiency and effectiveness.131132What Roles Do Managers Play? Management Roles Approach (Mintzberg)Interpersonal rolesFigurehead, leader, liaisonInformational rolesMonitor, disseminator, spokespersonDecisional rolesDisturbance handler, resource allocator, negotiator

32Interpersonal RolesRoles that managers assume to provide direction and supervision to both employees and the organization as a whole:Figureheadsymbolizing the organizations mission and what it is seeking to achieve.Leadertraining, counseling, and mentoring high employee performance.Liaisonlinking and coordinating the activities of people and groups both inside and outside the organization/department.133Informational RolesRoles associated with the tasks needed to obtain and transmit information in the process of managing the organization:Monitoranalyzing information from both the internal and external environment.Disseminatortransmitting information to influence the attitudes and behavior of employees.Spokespersonusing information to positively influence the way people in and out of the organization respond to it.134Decisional RolesRoles associated with methods managers use in planning strategy and utilizing resources:Entrepreneurdeciding which new projects or programs to initiate and to invest resources in. Disturbance handlermanaging an unexpected event or crisis.Resource allocatorassigning resources between functions and divisions, setting the budgets of lower managers.Negotiatorreaching agreements between other managers, unions, customers, or shareholders.135Exercise 4 Decisional RolesDiscuss in groups the basis upon which you make decisions in Mumias and report on your discussion136137What Managers Actually Do (Mintzberg)Interactionwith otherswith the organizationwith the external context of the organizationReflectionthoughtful thinkingActionpractical doing

37138Technical skillsKnowledge and proficiency in a specific fieldThe specific knowledge, techniques and resources required to perform an organizational role.Human skillsThe ability to understand, alter, lead, and control the behavior of other individuals and groups.The ability to work well with other peopleAbility to work with, communicate with, and understand other people

Managerial Skills38139Managerial SkillsConceptual skillsThe ability to think and conceptualize about abstract and complex situations concerning the organizationThe ability to analyze and diagnose a situation and distinguish between cause and effect.3940Exhibit 9 Basic skills of managersTechnical skillsConceptual skillsHuman skillsAbility to use specific knowledge, techniques, and resourcesAbility to work with, communicate with, and understand other peopleAbility to see the overall organization and integrate the parts of the system141Exhibit 10Conceptual SkillsUsing information to solve business problemsIdentifying of opportunities for innovationRecognizing problem areas and implementing solutionsSelecting critical information from masses of dataUnderstanding of business uses of technologyUnderstanding of organizations business modelSource: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.41142Exhibit 11Communication SkillsAbility to transform ideas into words and actionsCredibility among colleagues, peers, and subordinatesListening and asking questionsPresentation skills; spoken formatPresentation skills; written and/or graphic formatsSource: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.42143Exhibit 12Effectiveness/Technical SkillsContributing to corporate mission/departmental objectivesCustomer focusMultitasking: working at multiple tasks in parallelNegotiating skillsProject managementReviewing operations and implementing improvementsSource: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.43144Exhibit 13Effectiveness/Technical Skills (contd)Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.Setting and maintaining performance standards internally and externallySetting priorities for attention and activityTime management44Exercise 5 Time ManagementSelf assessment and Discussion145146Exhibit 14Interpersonal Skills (contd)Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.Coaching and mentoring skillsDiversity skills: working with diverse people and culturesNetworking within the organizationNetworking outside the organizationWorking in teams; cooperation and commitment46147Exhibit 15Skills Needed at Different Management Levels

47148Exhibit 16Management Skills and Management Function Matrix

48149How The Managers Job Is ChangingThe Increasing Importance of CustomersCustomers: the reason that organizations existManaging customer relationships is the responsibility of all managers and employees.Consistent high quality customer service is essential for survival.InnovationDoing things differently, exploring new territory, and taking risksManagers should encourage employees to be aware of and act on opportunities for innovation.49150Exhibit 17Changes Impacting the Managers Job

50Challenges for Management in a Global EnvironmentIncreasing Number of Global Organizations.Building a Competitive Advantage.Maintaining Ethical Standards.Managing a Diverse Workforce.Utilizing IT and E-commerceNew legislation15151Building a Competitive AdvantageIncreasing EfficiencyReducing the quantity of resources used to produce goods and services.Increasing QualityIntroducing Total Quality Management (TQM) to improve quality.Increasing Speed, Flexibility, and InnovationAdapting to bring new products to market faster.Increasing Responsiveness to CustomersEmpowering employees to deal with customers.152Exhibit 18 Building Blocks of Competitive Advantage

153Maintaining Ethical StandardsFactors Influencing Behaviors:External pressures from stockholders/stakeholders for increased organizational financial performance.Internal pressures from top management to lower-level managers to increase the organizations competitive performance and profitability.Societal, cultural, and environment demands on the organization.Hurt somebody unintentionally vs. illegally154Managing a Diverse WorkforceThe Increasing Diversity of the WorkforceNon-Discriminatory Employment Practices (Mumias HR policies and Procedures Manual, The Employment Act and related labour laws)Performance-Enhancing Benefits of a Diverse Workforce155Utilizing Information Technology (IT)and E-commerceBenefits of IT and E-commerce Makes more and better information about the organization available to outsidersEmpowers employees at all organizational levelsHelps managers carry out their roles more effectively and efficientlyIncreases awareness of competitive opportunitiesMakes the organization more responsive to its customers 156Oracle HR leave, training, recruitment, performance managementOracle Finance approving opex56Any questions?157158Terms to Knowmanagerfirst-line managersmiddle managerstop managersmanagementefficiencyeffectivenessplanningorganizingleadingcontrollingmanagement rolesinterpersonal rolesinformational rolesdecisional rolestechnical skillshuman skillsconceptual skillsorganizationuniversality of management58